NEO deploy its ability, dynamism and imaginative spirit to create benchmark into real estate and other communal properties. A pacemaker when it comes to high value real estate suggestions. We endeavor to create new assessment and diffusing pleasure in all the initiatives we take part in.

Main menu

Tag Archives: property news

Post navigation

Why Dwarka Expressway? The 18 km Dwarka Expressway in 2006 was planned to decongest Gurgaon by providing an alternative to NH8. The 14 km stretch on Gurgaon side is complete but work on the remaining four kilometers is unfinished. Some land on the Delhi side is yet to be acquired.

Decision to accord NH Status: Acquisition of land will become quicker, specially on the Delhi side, once Section 3(d) of the National Highways Act is notified. Section 3 (a) calls for appointment of competent authority for land acquisition on behalf of the government of India.

Other Sections: Section 3(g) ensures that compensation is paid to families. This will be fixed as per the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Second Amendment) Bill, 2015.

Residential Stock: There are as many as 40,000 units expected to come up in this area spread across 70 projects. Construction is in progress currently in sectors 37 C, 37D, 102, 102A, 103, 104, 105, 106, 107, 108, 109, 110, 110 A and 111.

Price Trends: Most residential projects were launched at ` 3,750 per sq ft and their current value is below ` 6,000 per sq ft. Prices in this market almost doubled in 2012-2014 but are now not expected to increase anytime soon. Some developers will time their delivery with the completion of the expressway.

The year 2015 marked a turnaround for India’s commercial real estate as steady economic growth and renewed corporate confidence, especially among ecommerce and IT companies, propelled transactions to the second-highest level in terms of area.

After over three years of weakness, total purchases and leases of office space in the top eight property markets rose to 35 million square feet during 2015. Net commercial real estate transactions by companies rose 17.1% from a year ago.

In 2011, a record 37 million sq. ft.of office space was taken up as rents eased after the global financial crisis. This time, however, it was the result of companies implementing growth plans, according to a report by property consultant Jones Lang LaSalle (JLL) India.

“During the year, office space demand was mainly driven by information technology IT enabled services, ecommerce, startups and large consulting firms,” said Anuj Puri, chairman at JLL India. “Players in many other sectors like fast moving consumer goods, banking, financial services and insurance, manufacturing, telecom and pharma did not come into the market – however, this should happen in 2016 and 2017. Next year will also see demand for built to-suit properties, especially from the larger IT occupiers.”

Commercial space transactions were distributed across new and old buildings in 2015, compared with largely newly completed buildings in 2011. There was a pick-up in large transactions this year, led by Flipkart, which leased 2 million sq. ft. of a custom-built office campus in Bengaluru, and Tata Consultancy Services, which rented over 2 million sq. ft. of built-to-suit space at Hiranandani Estate in Thane for 15 years.

Among purchases, pharma major Abbott IndiaBSE 1.38 % bought 5 lakh sq. ft. of space at Godrej Properties’ commercial project in Mumbai’s Bandra-Kurla Complex for about Rs 1,479 crore. A revival of momentum in commercial realty is an indicator of the economy’s health and augurs well for job creation. Deals by both investors and occupiers suggest that sentiment is improving for the office property market.

The pan-India vacancy level still stands at 16%, although the `realistic’ availability is actually 8-9% because total supply is not always relevant for corporate entities, he said. Many occupiers do not consider Grade-A buildings with multiple owners or those located in areas with inherent disadvantages and connectivity issues. Cities such as Pune, Bengaluru, Hyderabad and Chennai have a vacancy rate of 5-10% and would need fresh supply to meet growing demand, the report said.

Rental growth across Indian cities was steady, with Pune leading the pack with an 8.4% rise. This was followed by a 5.3% increase in average rentals in Bengaluru, 3% in the National Capital Region (NCR) and 1% in the Mumbai Metropolitan Region.

Private equity investments in Indian real estate is starting a new phase, says JLL India.

In its report ‘Real Estate Private Equity 3.0’, JLL India said “We believe so; the PE investment community has learned from the past and has improved, and the possibility of them focusing on higher returns at the cost of risk again is unlikely.

“If the Indian Government, which has generated a lot of hope, works on the right path and delivers what it promised, the industry will have patience and will move positively,” it added.

Anuj Puri, Chairman & Country Head, JLL India said, “There has been a clear increase of focus among investors about where they want to invest their funds. During 2007-08, investors left no stone unturned to participate in India’s economy and real estate growth story, and invested across all possible asset classes. In the same period, 66 per cent of funds were diversified.”

“The share of such funds has reduced to negligible levels, post-2014. In contrast, residential-focused funds have increased to 85 per cent today from the then measly figure of 14 per cent. These two trends show that the investment approach of investors has changed from weighing every asset class on the opportunity it presented to becoming residential-focused, as this asset class has given maximum returns over the years.”

A Parliamentary Committee today recommended a slew of measures favouring property buyers, which include a three-year jail term or a fine for a defaulting builder under a new law which will now cover projects of 500 sq. m. or eight flats.

The Select Committee of Rajya Sabha, which examined the Real Estate Bill 2013 and submitted its report in the House today, also recommended that 50 per cent of payments made by home-buyers for a real estate project should be kept in a separate account and used for that specific purpose only while the rest can be spent on other projects.

The Bill aims at establishing the Real Estate Regulatory Authority (RERA) for regulation and promotion of the sector and setting up of an adjudicating mechanism for speedy dispute redressal. It also aims at establishing the appellate tribunal to hear appeals against the decisions of the RERA.

Under the proposed new law, a jail term of up to three years or a penalty of up to 10 per cent of project cost or both can be imposed on a builder in case of defaulting on commitments made to a buyer.

The committee also recommended that the new law should cover projects of 500 sqm and more or eight flats, instead of 1000 sqm or 12 flats as proposed initially in the bill.

The panel recommended that promoters should get their accounts audited within six months after the close of every financial year by a practising chartered accountant.

It was also of the view that real estate development beyond town planning area may be brought under the ambit of the Bill.

The committee, however, did not agree that a person holding more than two apartments or plots in the same project should be treated as a promoter.

It said that a promoter, while applying for registration of any project with the authority, should enclose details of its existing projects, details of approvals, land title and payment dues.

The panel also redefined the carpet area, saying it means the net usable floor area of an apartment, excluding the area covered by the external walls and that under service shafts, exclusive balcony or verandah and open terrace areas, although it would include the area covered by the internal partition walls of the apartment.

A high level committee on land allotment to industrial units has decided to provide 30 acres of land to cigarette to FMCG major, ITC Ltd for establishment of a food park at Khurda, the emerging hub for food processing units.

The committee, chaired by the chief secretary, also gave its nod to steel equipment manufacturing facility proposed by SMS India Ltd. The facility is also coming up at Khurda, 28 km from here, and is estimated to cost Rs 250 crore.

“The committee considered 27 new proposals and 22 deferred proposals for land allotment. The major proposals were from ITC and SMS India,” said Vishal Dev, chairman cum managing director, Odisha Industrial Infrastructure Development Corporation Ltd (Idco), the nodal agency for land acquisition in the state.

The final decision on land allotment will be taken by the government after the committee submits its recommendations. “ITC has already submitted a proposal for setting up a unit to make biscuits and confectionery at the Khurda food park,” said a government official. Kolkata-based company is known for its Sunfeast range of biscuits. In the confectionery space, the conglomerate has brands like ‘mint-o’ and ‘Candyman’. ITC is an established player in the packaged food business with brands like ‘Aashirvad’, ‘Delishus’ and ‘Bingo’. Last year, Indo Nissin Foods Ltd, a subsidiary of Japan based Nissin Foods Holdings, had commissioned its factory with an investment of about Rs 100 crore at Khurda.

Earlier, another behemoth in the packaged food industry- Nestle had evinced interest to set up a state-of-the-art food processing unit in the state at an investment of around Rs 500 crore. Nestle intended to make its entire gamut of products including milk products, beverages, chocolates and confectionery at the proposed facility.

Other packaged food companies like Britannia and Parle Agro are already running their units in the state. The food processing policy of the government aims to promote establishment of units in food parks and mega food parks and increase the flow of investment across the supply chain.